YOU only have to scan rich lists to see the number of Aussies who made their fortunes from real estate. Here's how to get started on building your own real estate empire.

With low interest rates, falling house prices and the lure of first-home buyer schemes, now is an ideal time to get on the property ladder.

But where does a budding property mogul start?

Experts say one of the quickest ways to build your wealth is to reduce your risk on the properties you purchase which in turn will enable you to keep investing in your portfolio.

There are general guidelines on buying low-risk property, according to Business Insider.

1. Properties in good shape

Many people buy rough diamonds believing they’ll add value by renovating. Then they get mired in a much more expensive and time consuming property than they expected. More money into the property means lower investment returns for you. Skip fixers and instead buy properties that are in good shape to get those rental dollars coming into your bank account quickly.

The properties in the best locations - beach areas, CBDs, wealthy enclaves - generally have negative cash flows, so those are the locations you want to avoid. The moderately priced properties in ugly duckling areas are the real gems; they generally have the less appealing locations but better cash flows.

3. Properties with quality tenants

There is nothing better than buying a property with a decent tenant already in place. You get the security deposit and you don’t have to go in and clean, paint, update or fix too many things in the property. If you buy properties in areas that have good tenants, that’s hopefully the type of tenant you will inherit. Take a look at the current tenant’s lease, credit application and credit report, if you can, before you make the decision to purchase the property.

4. Properties in low vacancy areas

Vacant units get robbed, incur vandalism and don’t have any rent coming in to cover the bills. If you buy in places with high vacancies, it might be months before the property rents. Avoid properties in areas with many unoccupied units. Drive around at dinner time: No lights in a lot of houses means no one is residing there, and you shouldn’t,either.

5. Properties you will own a long time

The most important factor in real estate investment property is to own it for a long time. So do your due diligence and buy quality properties that you really like for all the right reasons, and plan to own them for good. That’s your best bet to earn wealth on real estate.

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